PPF(SZ:300258) Guoxin Securities·2024-08-28 08:03Investment Rating - The investment rating for the company is "Outperform the Market" [1][14][18] Core Views - The company is experiencing short-term pressure on performance, with revenue growth of 6.3% year-on-year in the first half of 2024, but a decline in net profit by 26.6% [1][4] - The company is focusing on product category expansion, customer diversification, and overseas market development to drive future growth [1][14] - The company has adjusted its profit forecasts downward due to fluctuations in downstream customer demand, with expected net profits of 260 million, 329 million, and 406 million yuan for 2024, 2025, and 2026 respectively [1][14] Summary by Sections Financial Performance - In H1 2024, the company achieved revenue of 1.01 billion yuan, a year-on-year increase of 6.3%, while net profit was 90 million yuan, down 26.6% [1][4] - In Q2 2024, revenue was 503 million yuan, up 0.8% year-on-year but down 0.1% quarter-on-quarter, with net profit of 47 million yuan, down 43.1% year-on-year [1][4] - The gross margin in Q2 2024 was 23.8%, a decrease of 1.1 percentage points year-on-year [1][5] Business Strategy - The company is expanding its product offerings from single gear supply to complete differential assembly, with ongoing projects in lightweight chassis components [1][8] - The company has diversified its customer base, moving from reliance on Volkswagen to include domestic brands and new energy vehicle manufacturers [1][10] - The overseas expansion includes a factory in Thailand expected to start production in Q4 2024, which will enhance growth opportunities [1][13] Financial Projections - Revenue projections for 2024, 2025, and 2026 are 2.482 billion, 3.165 billion, and 3.965 billion yuan respectively, with corresponding net profit estimates of 260 million, 329 million, and 406 million yuan [2][16] - The expected earnings per share (EPS) for 2024, 2025, and 2026 are 0.54, 0.68, and 0.84 yuan respectively [1][14]